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Debt is a complicated topic, and it can be difficult to understand when to seek help. We’re here to help make the process easier. So, when is the best time to seek debt counselling?
How Debt Counseling Works
A credit counsellor can devise a customized plan to address financial challenges and help reach specific goals, which may include an action plan. The plan could include:
- Decreasing expenses
- Increasing income
- Debt payment plan
- Bankruptcy
Debt Management vs. Debt Settlement
Debt management is a process aimed at repaying existing debts. The objective is to get the monthly payments under control and to help to establish a budget. Some people find that debt management plans are a good option.
Debt settlement is a process in which individuals negotiate directly with creditors to lower their debt balance. Debt settlement helps put debts behind.
When to Seek Debt Counseling
There are many reasons to seek financial guidance. When dealing with debt, there are a few situations where seeking debt counselling can be beneficial.
- When financial stability is at risk
Struggling to make payments and keep up with day-to-day expenses? Then debt counselling may be a good option.
In this case, a credit counsellor can help an individual get back on track.
- When there’s an issue of identity theft
If the identity has been stolen, the individual may need to work closely with creditors to clear up the problem before they can get back to managing their credit.
- When debt is overwhelming
Sometimes, the amount of money a person owes is too much to handle. If there’s an inability to handle monthly payments and make ends meet, then debt counsellors can help.
A debt counsellor can put together a plan tailored to their needs and will help with the financial issues.
- When looking to consolidate debt
When facing multiple creditors, the best way to put an end to debt may be to consolidate the debt and to create a debt management plan.
Debt management can help individuals get on top of their debt and avoid bankruptcy.
- When there’s a struggle to make ends meet
Debt counselling may be a good option when struggling with finances and having difficulty getting by. A credit counsellor can help create a plan to get back on track.
When to Consider Bankruptcy
Bankruptcy is a complicated issue that should be addressed by a professional. When struggling with excessive debt and considering filing for bankruptcy, there are a few situations in which it may be a good option.
- When debt is overwhelming, and there’s an inability to pay bills.
- If facing severe debt that jeopardizes the ability to pay bills, an individual may want to consider bankruptcy.
Don’t be too quick to declare bankruptcy… we have solutions to help you out!
Get Those Debts Paid
When overwhelmed by excessive debt, it’s time to call a credit counsellor. A credit counsellor will help devise a plan to get back on track.
Debt Helpers are debt consultants in Canada that offer customized solutions. The company offers a wide range of consulting services and debt solutions to reach specific goals of becoming debt-free. Get in touch today!